Comfort

It is undeniable that Kingfisher beer is an exemplary social lubricant.

The beer, and the promoter, have lubricated the elevated thinking of financial institutions in India that have converted $500 million of $1.5 billion Kingfisher airline debt into equity at 62 a share (current price 25), extended maturity, reduced interest, and agreed to a moratorium on payments.

The promoter and UB Holdings have provided guarantees of $3 billion for which they receive $10 million each a year in fees.

A cynic would claim that the promoter is assured $20 million off the top of $1.2 billion in revenue on which the airline loses $250 million a year, close to $1 million a day. The fee is a suitable substitute for a dividend that may never come assured by a guarantee without value.

But the beer is good


Kingfisher got Mallya's guarantee for Rs 6,176 cr in 2010-11 - Hindustan Times